(1) The Empowered authority or an officer authorized by the Commissioner under sub- section (3) and (6) of Section 66 as the case may be , may do any or all of the following acts namely:-

(i) to enter the said building or place with such assistance of police officers as may be required, to search the same and to place identification marks on such books of accounts or other documents found therein, as in his opinion, will be relevant to or useful for any proceedings under the Act and to make a list of such books or documents with particulars of the identification marks thereon;

(ii) to examine such books or documents and to make copies of or extracts from such books or documents.

(iii) to take possession of and seize any such books or documents under sub-section (3) and (4) of Section 66 and to make a note or and inventory of any other article or thing found in the course of such search which, in his opinion will be useful for or relevant to any proceedings under the Act.

(2) Whenever any building or place to be searched is closed, any person residing in or being incharge of such building or place shall, on demand by the Empowered authority or the authorized officer as the case may be, allow him free ingress thereto and afford all reasonable facilities for search therein.

(3) If ingress into such building or place cannot be so obtained it shall be lawful for the Empowered authority or the authorized officer as the case may be, executing the authority, with such assistance of a police officer as will be required to enter such building or place and search therein and in order to effect an entrance into such building or place to break open any outer or inner door or window of any building or place, whether that of the person to be searched or of any other person to be searched or of any other person if after notification of his authority and purpose and demand of admittance duly made, he cannot otherwise obtain an admittance.

(4) Where any person in or about such building or place is reasonably suspected of concealing about his person any articles for which search is being made, such person may also be searched by the Empowered authority or the authorized officer as the case may be , with such assistance, as he may consider necessary. If such person is a woman, the search shall be made by any other woman with strict regard to decency.

(5) Before making a search the Empowered Authority or the Authorized Officer as the case may be, about to make the search shall, call upon two respectable inhabitants of the locality in which the building or place to be searched is situated to attend and witness the search and may issue an order in writing to them or any of them so to do.

(6) The search shall be made in presence of the witnesses aforesaid and a list of all things seized in the course of such search and of the places in which they were respectively found shall be prepared by the Empowered Authority or the Authorized Officer as the case may be and signed by such witnesses.

(7) The occupant of the building or place searched or some person on his behalf shall be permitted to attend during the search and copy of the list prepared under the preceding clause shall be delivered to such occupant or person. A copy shall also be forwarded to the Commissioner.

(8) When any person is searched, a list of all things taken possession of shall be prepared and copy thereof shall be delivered to such person. A copy shall also be forwarded to the Commissioner.

(9) If the Empowered Authority or the Authorized Officer as the case may be, seizes any books of accounts/registers or documents under section 66, he shall forthwith grant a receipt for the same and shall return them under proper receipt to the dealer or to the person from whose custody they were seized after completing proceedings under the said section. The proceedings shall ordinarily be completed within a period of 90 days from the date of seizure. The Empowered Authority or the Authorized Officer as the case may be, may take copies or extracts of the seized documents as may be considered necessary. The officer may before returning the books of accounts etc affix his signatures and his official seal at one or more places thereon and in such case the dealer or the aforesaid person will be required to mention in the receipt given by him the number of places where the signatures and the seal of the officer have been affixed on such books of accounts.

(10) Notwithstanding anything contained in sub-rule (9) the authority or the officer who seized any account books, registers or other documents may for reasons to be recorded in writing, with the prior approval of the Commissioner, retain such account books registers or documents for a further period not extending beyond 30 days from the date of completion of all the proceedings under the Act.

(11) In all searches under these rules if any building or place is an apartment in actual occupancy of a woman who according to custom does not appear in public the authority making the search shall before entering such apartment give notice to such woman that she is at liberty to withdraw and shall afford her every reasonable facility for withdrawing and may then break open the apartment and enter it.

(12) If the Empowered authority or any officer authorized by the Commissioner as the case may be under sub-section (6) of section 66 finds any goods, the sale of which, is liable to tax and which are found in any office, shop, godown, warehouse vehicle or in any other place of business or in any building or place of the dealer but not accounted for by the dealer in his accounts, registers or other documents maintained in the course of his business he may seize such goods and prepare a list of all such goods seized under this sub-rule and get it signed by two respectable witnesses.

Provided the goods so seized shall be kept under official custody or handed over to any person for the safe custody till orders for their release are issued by the Empowered Authority or the Authorized Officer as the case may be. The goods shall be handed over to such person after obtaining declaration on Form VAT-55 in presence of two respectable witnesses who shall sign such declaration form.

(13) Soon after the seizure of the goods, the Empowered Authority or Authorized Officer as the case may be, may levy penalty under sub-section (6) of Section 66 of the Act provided that before passing the order, a reasonable opportunity of being heard is given to the dealer by issuing a notice in Form VAT-56. The goods shall be released after passing orders subject to payment of penalty imposed, if any. And in case the penalty demanded is not paid within the period under rules, it shall be put to auction and the sale proceeds of the goods shall be paid to the owner of the goods after deducting the amount of such penalty besides other expenses incurred on unloading, handling and auctioning. The excess amount shall be refunded to the owner of the goods on an application made in Form VAT-57 within a period not exceeding 90 days from the date of auction. In case no claim of ownership is made within the said period the amount shall be forfeited to the Government. No interest shall accrue on such amount.